3 Quality Stocks to Buy Amid Market Volatility
Recent market volatility has impacted several stocks, presenting potential buying opportunities for investors. CVS Health, Chegg, and fuboTV have all seen declines due to specific challenges, such as decreased sales of COVID-19-related products and rising costs. Despite these setbacks, CVS Health remains a strong contender with multiple growth avenues and a solid reputation as a leading U.S. pharmacy chain. However, Chegg faces significant risks from the rise of AI chatbots like ChatGPT, and the company has responded by reducing its workforce and developing new AI-integrated platforms.
Amid concerns about a potential recession, safe-haven stocks are gaining attention. Companies like Walmart, General Mills, and Costco Wholesale are seen as reliable investments due to their essential products and strong financial positions. For example, Costco's stock has performed exceptionally well, rising 31% this year and 212% over the last five years, despite inflation-related challenges. General Mills also offers a robust dividend and a reasonable price-to-earnings ratio, making it an attractive option for income-focused investors.
The U.S. real estate market shows resilience despite high mortgage rates and supply-demand imbalances. High-yielding real estate stocks like Cousins Properties, Realty Income, and Realty Growth offer stable dividend income and growth potential. Cousins Properties specializes in Class A office spaces in the Sun Belt with low vacancy rates, while Realty Income focuses on retail and industrial properties with a high occupancy rate. Realty Growth boasts a diverse portfolio of retail properties across the Sunbelt.
Stock buybacks have become a strategic tool for companies like Mastercard, Intuit, and W. R. Berkley Corporation to enhance earnings per share and return capital to shareholders. These buybacks indicate management's confidence in their stock's value. For instance, Mastercard repurchased approximately 5.8 million shares for $2.6 billion in Q2 2024, with significant buybacks continuing into 2025. Such initiatives can be a tax-efficient alternative to dividends and help manage dilution from employee stock options.
